- Revenue: $533 million
SAN JOSE, Calif., Oct. 29, 2019 — (PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $533 million for its first quarter of fiscal 2020 ended September 28, 2019, a 4% decrease from the $557 million revenue recorded in the prior quarter, and a 17% decrease from the same quarter of last year.
"Our September quarter results met our expectations, while also maintaining lean inventory levels," said Tunc Doluca, President and Chief Executive Officer. "Looking forward to the December quarter, we expect sequential growth in Communications and Data Center, Automotive and Industrial, partially offset by smartphone-related headwinds and holiday seasonality in Consumer."
Fiscal Year 2020 First Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.51. The results were affected by $5 million in pre-tax special items which primarily consisted of charges related to acquisitions. GAAP earnings per share, excluding special items was $0.52. An analysis of GAAP versus GAAP excluding special items is provided in this press release.
Cash Flow Items
At the end of the first quarter of fiscal 2020, total cash, cash equivalents and short-term investments were $1.8 billion, down $105 million from the prior quarter.
Notable items included:
- Cash flow from operations: $141 million
- Capital expenditures: $21 million
- Dividends paid: $130 million ($0.48 per share)
- Stock repurchases: $94 million
Trailing twelve months free cash flow was $725 million. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.
Business Outlook
The Company's 90-day backlog at the beginning of the December 2019 quarter was $402 million. Based on the beginning backlog and expected turns, our results for the December 2019 quarter are forecasted to be as follows:
- Revenue: $525 to $565 million
- Gross Margin: 63.5% to 65.5% GAAP (64% to 66% excluding special items)
- EPS: $0.47 to $0.55 GAAP ($0.49 to $0.57 excluding special items)
Maxim Integrated's business outlook does not include the potential impact of any special items related to restructuring activity, acquisitions, or other business combinations that may be completed during the quarter.
Dividend
A cash dividend of $0.48 per share will be paid on December 13, 2019, to stockholders of record on November 27, 2019.
Conference Call
Maxim Integrated has scheduled a conference call on October 29 at 2:00 p.m. Pacific Time to discuss its financial results for the first quarter of fiscal 2020 and its business outlook. This call will be webcast by Shareholder.com and can be accessed at the Company's website at
investor.maximintegrated.com.
A presentation summarizing financial information to be discussed on the conference call is posted at investor.maximintegrated.com.
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| CONSOLIDATED STATEMENTS OF INCOME |
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| (Unaudited) |
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| Three Months Ended |
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| September 28, 2019 |
| June 29, 2019 |
| September 29, 2018 |
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| (in thousands, except per share data) |
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| Net revenues | $ 533,040 |
| $ 556,545 |
| $ 638,495 |
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| Cost of goods sold | 189,717 |
| 200,154 |
| 208,259 |
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| Gross margin | 343,323 |
| 356,391 |
| 430,236 |
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| Operating expenses: |
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| Research and development | 108,989 |
| 105,136 |
| 112,708 |
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| Selling, general and administrative | 76,115 |
| 75,130 |
| 81,518 |
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| Intangible asset amortization | 756 |
| 756 |
| 773 |
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| Severance and restructuring expenses | 1,434 |
| 1,715 |
| 994 |
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| Other operating expenses (income), net | 25 |
| 83 |
| 60 |
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| Total operating expenses (income), net | 187,319 |
| 182,820 |
| 196,053 |
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| Operating income (loss) | 156,004 |
| 173,571 |
| 234,183 |
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| Interest and other income (expense), net | 1,829 |
| 4,079 |
| (546) |
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| Income (loss) before provision for income taxes | 157,833 |
| 177,650 |
| 233,637 |
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| Income tax provision (benefit) | 17,677 |
| (189,908) |
| 36,214 |
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| Net income (loss) | $ 140,156 |
| $ 367,558 |
| $ 197,423 |
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| Earnings (loss) per share: |
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| Basic | $ 0.52 |
| $ 1.35 |
| $ 0.71 |
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| Diluted | $ 0.51 |
| $ 1.33 |
| $ 0.70 |
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| Shares used in the calculation of earnings (loss) per share: |
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| Basic | 271,388 |
| 272,382 |
| 278,045 |
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| Diluted | 274,436 |
| 275,834 |
| 282,454 |
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| Dividends paid per share | $ 0.48 |
| $ 0.46 |
| $ 0.46 |
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| SCHEDULE OF SPECIAL ITEMS |
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| (Unaudited) |
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| Three Months Ended |
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| September 28, 2019 |
| June 29, 2019 |
| September 29, 2018 |
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| (in thousands) |
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| Cost of goods sold: |
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| Intangible asset amortization | $ 3,111 |
| $ 4,038 |
| $ 6,915 |
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| Total | $ 3,111 |
| $ 4,038 |
| $ 6,915 |
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| Operating expenses: |
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| Intangible asset amortization | $ 756 |
| $ 756 |
| $ 773 |
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| Severance and restructuring | 1,434 |
| 1,715 |
| 994 |
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| Other operating expenses (income), net | 25 |
| 83 |
| 60 |
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| Total | $ 2,215 |
| $ 2,554 |
| $ 1,827 |
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| Interest and other expense (income), net | $ (207) |
| $ (2,980) |
| $ (378) |
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| Total | $ (207) |
| $ (2,980) |
| $ (378) |
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| Income tax provision (benefit): |
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| Impact of U.S. tax legislation (1) | $ - |
| $ 47,703 |
| $ - |
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| Impact of income tax audit settlements (2) | - |
| (251,599) |
| - |
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| Total | $ - |
| $ (203,896) |
| $ - |
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| (1) Includes effect of U.S. tax legislation enacted on December 22, 2017. |
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| (2) Includes effect of income tax audit settlements. |
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